Nationwide Financial® launches Wealth GuardSM
Guaranteed minimum accumulation benefit addresses consumer fear of losing money
FOR IMMEDIATE RELEASE
Jan. 25, 2006
Dan Orzano (614) 677-5115
Jeff Botti (614) 249-6339
Columbus, Ohio— Consumers who want the protection of variable life insurance and the peace of mind knowing that their premiums are at least partially protected against market loss now can have both. Nationwide Financial Services, Inc. (NYSE: NFS) today launched Wealth GuardSM, a patent-pending Guaranteed Minimum Accumulation Benefit rider, available for an additional charge, with its flagship variable universal life product.
According to LIMRA, an insurance industry research group, 44 percent of Americans believe they need more life insurance. Additionally, nearly 66 percent of households believe stocks are a good investment in the long run yet half think the stock market is too risky1. Because investing involves market risk including the possible loss of principal, Wealth Guard provides consumers with the life insurance protection they need and secures a measure of downside protection for their premium investment.
“Market volatility in recent years has resulted in Americans choosing more conservative investments or products with a guaranteed death benefit. That’s because people want to mitigate potential losses and protect their financial futures,” said Peter Golato, senior vice president for Nationwide Financial. “With Wealth Guard, consumers know their premium investment is protected against negative market performance and they can lock in positive market gains annually.”
Wealth Guard’s benefit provides that the consumer’s policy cash value at rider maturity –
assuming all premium requirements are met – is guaranteed to be the greater of a percentage of their principal investment (either 85 percent or 100 percent depending on the option selected) or 85 percent of their highest policy anniversary cash value.
“Because variable universal life is often used to generate tax-advantaged, supplemental income, Wealth Guard provides a guaranteed accumulation benefit with the ability for consumers to customize their maturity date to ensure the income is there when they need it most,” Golato said.
Wealth Guard, coupled with Nationwide Financial’s free Automated Income Monitor (AIM), enables consumers to turn their guaranteed accumulation benefit into a reliable source of income. Once the rider has reached maturity, consumers – with the help of their investment professionals – can use AIM to set up an automated income stream based on policyholders’ financial needs. Each year, Nationwide provides an annual review package to ensure objectives are being met. Consumers and their investment professionals establish a plan and AIM automates the process for them. All guarantees are subject to the claims-paying ability of the issuing life insurance company.
Investment professionals wanting additional information can contact Nationwide Financial at 1-800-321-6064. Consumers who would like more information should contact their investment professional.
About Nationwide Financial®
Nationwide Financial Services, Inc. (NYSE: NFS) a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers investi and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.
It’s part of the Nationwide® group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 99 on the Fortune 500 based on 2004 revenue.ii For more information, visit www.nationwide.com
Nationwide, Nationwide Financial and the Nationwide Framemark are federally registered service marks of Nationwide Mutual Insurance Company. Wealth Guard is a service mark of Nationwide Mutual Insurance Company.
i Nationwide Investment Services Corporation, member NASD. In MI only: Nationwide Investment Svcs. Corporation.
1 The MarcroMonitor; March 2005
ii Fortune Magazine, April 2005